Unit 3 Notes on Government of the 1920's

GOVERNMENT IN THE 1920s

INTRODUCTION

  • Introduction of key figures:

    • Warren Harding: "My administration was corrupt!"

    • Calvin Coolidge: "I had to fix his mess!" and "I’m going to help the rich get richer!"

A. THE HARDING ADMINISTRATION

  • Election of Warren Harding (1920):

    • Signaled a shift towards conservative policies.

    • Focus on aiding business growth as opposed to Progressive reforms.

  • Harding’s Economic Policies Promote Growth:

    • Andrew Mellon appointed Secretary of the Treasury.

    • Supported policies benefiting businesses.

      • Implemented lower taxes and reduced government spending.

    • Treasury operated with surplus, emerging out of debt.

    • Harding and Mellon aimed to minimize government interference.

    • Advocated for laissez-faire economics.

    • Described economic approach as a "Return to Normalcy."

B. LEADERS OF BUSINESS DEREGULATION

  • Warren G. Harding (President):

    • Promoted a conservative government that favored business.

    • Adopted laissez-faire policies.

    • Appointed pro-business commissioners to key roles.

    • Altered Federal Reserve Board and Interstate Commerce Commission to promote business interests.

  • Calvin Coolidge (Vice President):

    • Supported similar views as Harding on business deregulation.

  • Andrew Mellon (Secretary of the Treasury):

    • Sought to ensure government policies benefitted the business sector.

    • Sponsored the Mellon Plan to lower taxes, particularly for wealthy business owners.

C. CORRUPTION AND SCANDAL UNDER HARDING

  • Officials Betray Public Trust:

    • Harding's reliance on close friends led to significant corruption.

    • Public officials exploited their positions, leading to extensive financial mismanagement.

    • Consequences included the waste of hundreds of millions of taxpayer dollars.

  • The Teapot Dome Scandal:

    • Central figure: Secretary of the Interior Albert Fall.

    • Organized the leasing of government-controlled oil reserves to private interests in exchange for large bribes.

    • Investigation revealed the scandal, damaging public trust in the federal government.

    • Harding died of a heart attack shortly after the affair came to light.

    • Calvin Coolidge:

    • Sought to eliminate corruption from government.

    • Achieved re-election in a landslide following Harding's presidency.

D. ECONOMIC PROSPERITY UNDER COOLIDGE

  • Support of Business from the White House:

    • Coolidge admired productive business leaders.

    • Emphasized belief that "The chief business of the American people is business."

    • Continued Harding’s policies under Mellon, focusing on:

    • Reducing national debt.

    • Trimming the federal budget.

    • Lowering taxes.

    • Resulted in significant economic boom, characterized by:

    • Rise in industrial profits.

    • Massive growth in the stock market.

  • Persisting Issues Amid Prosperity:

    • Despite economic growth, several social issues persisted:

    1. Farmers struggled:

      • Facing declining prices and trying to maintain their lands.

    2. Labor unions:

      • Called for higher wages and improved working conditions.

    3. Discrimination against African Americans:

      • Severe issues especially in the South due to Jim Crow laws institutionalizing segregation.

    4. Coolidge’s Stance:

      • “Silent Cal” did not engage with these societal issues, contrasting with Progressive Presidents who actively sought to shape an ideal nation.

E. AMERICA'S PLACE IN A CHANGED WORLD

  • International Development Goals and U.S. Actions:

    1. League of Nations (1920):

    • Aim: Prevent wars and mediate international disputes.

    • Supported by Wilson but rejected by the Senate.

    1. World Court (1920):

    • Purpose: Make judgments in international conflicts.

    • Supported by Harding but also rejected by the Senate.

    1. Dawes Plan (1924):

    • Managed Germany's reparations payments after WWI.

    • U.S. led efforts to oversee war debt collections.

    1. Kellogg-Briand Pact (1928):

    • Goal: Abolish war as a national policy for dispute resolution.

    • U.S. signed alongside several other countries.

    1. Policy of Non-Recognition (1917-1933):

    • Aimed to counteract the growing influence of the USSR by refusing to recognize its government.

    1. U.S. Intervention in Nicaragua (1927-1932):

    • Purpose: Restore peace and secure American citizens.

    • U.S. military sent to intervene and suppress rebellion.

F. SEEKING STABILITY AFTER WWI

  • Post-WWI Consensus among Citizens:

    • Universal agreement across nations to prevent the recurrence of WWI.

    • Questions arose on how to achieve this goal.

  • Washington Naval Disarmament Conference:

    • Attempted to curb the escalatory naval arms race among global powers.

  • Kellogg-Briand Pact Revisited:

    • Initiative to officially declare war as not a viable tool for international diplomacy.

    • Although many nations adopted the pact, it lacked enforceable power.